Speaking at the Guardian Public Services Summit Nick Clegg said the private, community and voluntary sectors all have a vital role to play in modernising public services in the years to come. He also said that he would take a ‘hard line’ against any blanket privatisation or skewing of the market against public sector providers.

The Deputy PM said:

As we modernise public services in the years to come, I will take a hard line against monopolies because they stifle innovation.

New and alternative providers - from the private, community and voluntary sectors - have a vital role to play in our public services.

But I will also take a hard line against the kind of blanket privatisation which was pursued by governments in the past. Because replacing a public monopoly with a private monopoly achieves nothing but reduced accountability.

And I will take a hard line, too, against any attempts to replicate the mistake of skewing the market against public sector providers, effectively bribing private companies by offering them more money to do exactly the same job.

Mr Clegg said the modernisation of provision will result in opportunities to innovate and do things differently according to local needs rather than the needs of the centre.

He added:

I believe, if we open public services in this way, we will secure the biggest prize of all for all those who work in public services: Freedom.